Avoiding scams

Avoiding scams

Cryptocurrency has a bad reputation with scams even though there are more scams on the internet that are not crypto related. For those of us who want to see widespread adoption having less scams can help get us closer.

1 Avoiding scams on telegram will be the main focus of this article. Telegram is a great tool and i use it every day. Unfortunately close to half the people on it are scammers or at least dishonest.

List of common scams on telegram.

1 Fake admins: People copy names of admins from official groups and send you private messages. Admins will not send you a personal message( PM) unless you have written them already. Also anytime you are not 100% sure if they are legit admin ask them to post in main group something that verifies they are in fact admin.

2 People buying or selling crypto directly. Never do this period. Buy your tokens from an exchange. I consider anyone trying to trade with others as a scammer or at least very inexperienced and not to be trusted.

3. Fake romantic encounters. Telegram is not a dating platform, dont use it for this. There are plenty of legitimate dating sites keep you money separate from this

4. Fake newbie, Many scammers pretend to be a newcomer because people feel more comfortable if they think they know more than the person they are talking to. I help new people every day but if a supposed newcomer all the sudden starts trying to share projects with me i instantly block them.

5. Personal messages. If a person is taking about a project but wont name it inside the group, dont trust them. Any project that is good can be talked about in group. Some groups might not allow this but most admins will allow you to ask for the project name at least. Personal messages sent to you from people you have never talked to are almost always not good. Even if the person is not a scammer they are usually trying to promote something. I would say 99% of these projects they share are worthless and possibly dangerous. In this guide you will learn how to decide if a project is safe.

This brings us to next topic scam projects.

In all my guides I will be discussing TRON related topics. Tron has a lot of great dapps and there are plenty of profits to be made in tron network. However, more than half the projects on Tron are scams or at least worthless. This is list of red flags to lok for that you should avoid the project.

1. High paying rewards for referrals. If a project is giving users large referral bonus they are more concerned with getting a lot of people quickly than making the project last. If 5 or 10 referrals will give you back 100% of your investment they are going to end quickly. If you refer those type projects you will become known as a scammer. Sharing projects that are not good will ruin your name and most likely get you banned from official telegram groups. The higher the referral bonus the more risky the project is.

2. Pushy people and admins. If a person is telling you to hurry or being too insistent that you join its probably not good. This is very commun with high referral because they just want you to join so they can get bonus.A good project doesn’t need to beg people to invest. Good projects stand on their value. They are not as concerned about how many people invest because they know they have something of value that will grow.

3.Any project that guarantee a fixed % return daily is almost always a scam. Crypto currency is volatile and very difficult to know what will happen from day to day. Project that says stake token and receive 2% to 10% every day is not sustainable and it will end abruptly and you will lose money. Many of these scams claim “ NO RISK, GUARANTEE RETURNS” Investment is risky there are very few projects that have no risk. Be very careful, #1 RULE IF IT SOUNDS TO GOOD TO BE TRUE, its probably a scam.

4. Contacts should be open source meaning anyone can view contact code. You dont have to know how to read code there are many people who do. Let an open source contact run for a day or two and if its not safe someone will see it and warn the community. There are exceptions of closed source contacts that are not scams but they should have been audited by separate company. To be most safe its best to not invest in closed source contracts.

5. Learn how to use Justswap and understand what liquidity is. A token with very little liquidity is risky because if people start to sell it there will be no money left to sell it the next day. Also tokens with huge amounts of liquidity are risky because the liquidity providers are taking big risk and you must wonder why they would risk so much. This topic can be very complicated. I will be doing an article specifically about liquidity. In general tokens that are only available on justswap are more risky. Good projects will have tokens for trade on Polindex and trontrade.

6. THIS IS THE MOST IMPORTAMT RULE. Dont do things you dont understand. It is better to miss an opportunity than to invest in something you dont understand and lose you money. We all want to make money nut if you dont take the time to learn you will lose more than you might have made by jumping in without knowledge. You cam lose a lot of money on good,trustworthy projects just because you dont know how it works or dont know what the next step is. Learn first the time will come when you can make great investments. There is nothing wrong with starting very small and practice before you risk large amounts on things that are more advanced.

Talk to anyone who has been in Tron for a while and i would say most of them would tell you that at least once they lost money because they made a mistake because of their lack of experience.